AUSTRALIA'S defence minister has apologised to military personnel past and present who were sexually abused or otherwise mistreated during their service.

Defence Minister Stephen Smith also launched an inquiry into hundreds of allegations of abuse over six decades.

The apology was made in Parliament on behalf of the government as the latest step in a two-year effort to reform the culture of the Australian military and make it more accepting of women.

He said: "Young men and women have suffered treatment which no member of our defence force or our community generally should experience."

"Young men and women have endured sexual, physical or mental abuse from their colleagues which are not acceptable and do not reflect the values of a modern, diverse, tolerant, Australian society," he added.

He noted claims that officers had abused their positions of trust through their own behavior or by turning a blind eye to the actions of others.

Smith also announced that retired judge Len Roberts-Smith had been appointed to examine allegations of abuse from more than 1,000 people dating back to the 1950s.

The earliest case relates to the alleged abuse of a 13-year-old navy trainee in 1951, while the most recent relates to events in 2011.

A preliminary review of these allegations by a law firm found that 750 were "plausible," Smith said.

The three-month inquiry could result in compensation of up to 50,000 Australian dollars ($52,000) for each victim and the alleged perpetrators being referred to criminal authorities for prosecution.

Smith said some of the perpetrators could still be serving in the military.

Australian Defense Force Chief Lt. Gen. David Hurley also apologised to victims and pledged cooperation with the inquiry.

"The number, nature, and range of allegations demonstrates that some members of the ADF have failed to understand the responsibility that rank imposes; that rank is a privilege and not a license for domineering, belittling or predatory behavior," Hurley said in a statement.

The government started inquiries last year in response to a young woman's allegation that a fellow cadet had secretly filmed a sexual encounter between the pair and broadcast it to their colleagues at the Australian military officer training academy. The incident and the attention the government focused on it provoked a wave of complaints of sexual misconduct over the decades.